Following the regulatory penalties and dramatic exit of the largest US forex broker FXCM from the country and the subsequent announcement that Gain Capital is buying off FXCM's retail forex clients, new details are emerging about the deal.
According to the latest filing of FXCM with the US Securities and Exchange Commission (SEC), Gain Capital will pay up to $500 for each FXCM client. There, however, are a number of conditions. As per the agreement, Gain Capital will pay $500 for each account with at least one new trade made in the first 76 calendar days after the closing of the deal and $250 for an account that makes at least one new trade between day 77 and day 153.
Meanwhile, Gain Capital's CEO Glenn Stevens said he was pleased with the company position. "We are pleased to continue our role as a leader in a consolidating industry," commented Stevens. "Gain has a long history of successful transactions, having completed ten significant acquisitions over the last five years. We will work very hard to ensure that there is a seamless transfer of clients to our award-winning Forex.com service," Stevens added.
With the exit of FXCM and the completion of the deal, Gain Capital will become the largest forex broker in the US, on a list of active retail forex brokers in the country that is getting ever shorter. In addition to Gain Capital, there would be Oanda, Interactive Brokers and TD Ameritrade.